This week, we met Hank.
Hank’s main concerns, in his own words: “After college I spent about a decade pursuing my passion of coaching triathletes rather than go into the corporate world. I took a job managing a bike shop but the franchisee quickly drove off the other employees before then leaving himself. I was the only employee left, still making my original salary, but then the corporate owner stopped paying me through direct deposit and switched to envelopes of cash. I wasn’t immediately aware that they were no longer paying their share of taxes for my salary, but I knew I needed to get out of that situation ASAP. I ended up with a job in anti-money laundering (something that actually relates to my degree) where for the first time I’m actually able to set money aside and plan for the future.
After starting my new career I put lot of time into creating a detailed budget started learning about personal finance.My first priority is ensuring I’ll have enough for retirement. Working as a 1099 employee, I don’t have any retirement or health care benefits through work so everything falls on me. I now max out my Roth IRA and have switched the investments to low cost index funds (80% US total stock market, 20% International). I have a high deductible health care plan which allows me to get an HSA that I am also maxing out each year and my HSA provider offers Vanguard index funds. I’ve spent the last 18 months trying to be aggressive with catching up on my retirement savings and I’d love to hear how I’m doing and what I can do better.”